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Unlike the rear-wheel drive 126, the Cinquecento was a front-wheel drive car. Whereas the 126 had a rear mounted engine, the Cinquecento now featured a front mounted engine.

It was initially available with two engine choices, with the 1.1 L FIRE or "sporting" joining the lineup later. Interestingly, while the 704 cc engine was mounted longitudinally, the bigger units were fitted transversely, making the little Fiat one of the few cars in the world available with both configurations at the same time.[2][3]

The smallest engine, intended for sale in Poland only, was a 704 cc ohvtwo-cylinder unit, delivering 31 metric horsepower (23 kW) or 30 metric horsepower (22 kW) with catalyst. Cinquecento inherited this unit from the 126p BIS, an evolution of the 126p which was cancelled when the Cinquecento production started. In order to be fitted in the front-wheel drive Cinquecento, it underwent a major refurbishment (although the engine still employed a carburettor), which resulted, among other changes, in the crankshaft revolving in the opposite direction than in the 126p BIS![2][3]

The bigger engine was the 903 cc 40 PS (29 kW; 39 hp) version of the veteran ohvfour-cylinder engine, which saw service in many small Fiat models, starting with Fiat 850. (This engine dates back to the initial 633 cc unit as introduced in the 1955 FIAT 600.) It was fitted with single point fuel injection and was the base engine in most markets. Due to fiscal limitations, the displacement of this unit was limited to 899 cc in 1993, with a slight reduction of output, now producing 39 PS (29 kW; 38 hp).[2][3] This engine is derived from that used in the Fiat 127. While it still retains OHV chain drive pushrod layout it now has hydraulic tappets. Also now uses twin coil distributorless ignition.

From 1992-1996 Fiat also produced and sold an electric variant of the Cinquecento called the Elettra. The car was offered with either a Lead-acid or NiCd batterypack, providing a ranges of 62 mi (100 km) and 93 mi (150 km) respectively. Unlike purpose built electric cars, the Cinquecento Elettra used two battery packs, one in the engine bay and one under the rear seats, replacing the fuel tank. Although selling for 140,000 francs (~US$159,000), the Cinquecento Elettra enjoyed relative popularity in Italy, France and Switzerland.[4]

Fiat offered optional extras from the factory labelled with the Abarth name. The Abarth extras for the Cinquecento consisted of cosmetic changes only. A front apron with fitted fog lights, a rear apron, side skirts and a rear spoiler with a fitted 3rd brake light. There were also a set of 13" Speedline 5-spoke alloys wheels available instead of the standard Sporting alloys.

Unlike true Abarth models, there were no engine upgrades available from the factory and the car could not be purchased as a whole separate model. The Abarth parts were to be added by the purchaser at the time of ordering, hence why it is common to see cars with only some of the Abarth extras.

In the mid-1990s, a number of concept cars based on the Fiat Cinquecento were developed by a number of design houses including one that featured half of the car's interior and a running board to place a bike. Another of these designs was the Lucciola, a proposal for a new Cinquecento by Giorgetto Giugiaro. However instead of the car becoming the next small Fiat city car, a version of the design ended up being put into production by the South KoreanDaewoo Motor as their Matiz.[citation needed]

A Fiat Cinquecento appears in several episodes of the British sitcom The Inbetweeners in which main character Simon Cooper owns a yellow, fictional model known as a Fiat Cinquecento 'Hawaii' (the model used in filming appears to be a Sporting edition). Its appearance and features (including a tape deck and a replacement red side door) are frequently ridiculed by the characters. Over the course of the series, the car ends up with the following misfortunes:

Simon driving the car into the middle of a funeral procession (Thorpe Park)

Main character Jay Cartwright tearing off the passenger door when Simon is trying to park it at Thorpe Park (Thorpe Park)

The Happy Foundation charity trashing the car after main character Will McKenzie insults them on Nemesis Inferno (Thorpe Park)

Main character Neil Sutherland having sex with a goth girl, causing the seats to go damp (Caravan Club)